Property in San Sebastian, Spain for Sale – A Guide for Foreigners

Located in the Basque Country of northern Spain, San Sebastián is famed for its wonderful beaches, good food, and vibrant cultural scene.

Like many parts of Spain, the property market in San Sebastián has had its ups and downs. However, it is generally a desirable place to live for Spaniards and international buyers alike, meaning steady, long-term value appreciation.

This guide will help you understand the local property landscape for making an informed investment as well as understanding the associated taxes.

Why Invest in San Sebastián Real Estate?

See below why San Sebastian is special:

World-Class Food Scene

It is home to some of the world’s best restaurants, some with Michelin-star rankings that turn this city into a gastronomic capital.

Rental Demand

As a top tourist destination, the city attracts year-round visitors, making it a lucrative market for vacation rentals and long-term leasing.

Strong Property Values

As one of the most expensive markets in Spain, property here generally holds its value due to limited available space and continued buyer demand for this very special city.

High Quality of Life

San Sebastian guarantees a lifestyle high in convenience and luxury, with walkable streets, excellent health, and robust public infrastructure.

International Connectivity

The city is well connected with Europe and beyond through easy accessibility by San Sebastian Airport, Bilbao Airport, and high-speed train links.

Can Foreigners Buy Property in San Sebastian?

Yes, foreigners, including Brits, can buy property in San Sebastian, and there are no restrictions. Spanish property law doesn’t place any restriction on foreign ownership. For international buyers investing upwards of €500,000, residency in Spain is possible under the Spain Golden Visa program.

It’s relatively easy to buy property in San Sebastian as a Brit or any other non-EU citizen, as long as you meet the basic requirements. You don’t need special permission, but there are things you can do that make it easier:

• Open a Spanish bank account to handle property transactions and expenses.
• Obtain a Número de Identificación de Extranjero, or NIE, with which any legal and financial activity can be performed within Spain.
• Deal with a locally-based lawyer with expertise in Spanish property law for a smooth transaction, which also will protect the client’s interest.

Bear in mind that foreign buyers have to put up higher mortgage deposits than residents of Spain.

Finding a House in San Sebastian

San Sebastian offers everything from historical apartments to modern houses and villas that could suit almost each taste and budget. The rule is that properties right in the city’s centre, especially around La Concha Beach and the Old Town or Parte Vieja, are more expensive due to the location. Look for Gros or Amara neighborhoods for more budget-friendly options.

Access reliable job boards that deal exclusively with the Spanish market to get started:

• Fotocasa

• Idealista

• Kyero

While these websites can be very useful guides, a visit to San Sebastian and a viewing of the potential properties are highly advisable.

Upscore’s Benefits

Upscore’s Finance Passport can speed up your process of acquiring a house in San Sebastián and take care of the financing involved in it.

Multiple Lenders: Upscore compares quotes from a range of local lenders to ensure that you receive the best rate.

Remote Application: You are able to apply for a mortgage online only, streamlining that process from wherever you are.

Personalised Service: Upscore assigns an agent to guide you through every step in the processing of a mortgage hassle-free.

Free to Use: Upscore does not charge anything from its users; it draws in its commission straight from the lenders, not you.

FAQs

How Much Does Property in San Sebastian Cost?

Prices of property in San Sebastian vary with location and size, but thanks to its exclusivity, the average of a square metre is high compared to most cities in Spain. In areas such as La Concha or Parte Vieja, it may come up higher than €4,000.

Can a Foreigner Obtain a Mortgage in San Sebastián?

Yes, through a Spanish bank. As a non-resident, it is usually necessary to make a deposit much higher than residents – about 30-40% of the purchase price. Upscore can help compare mortgage offers and secure the best deal.

Does it Pay to Invest in Real Estate in San Sebastián?

Yes, the real estate market of San Sebastián is stable, with high demand and low supply keeping the values of property strong; this city’s appeal as a luxury destination again means you can count on consistent rental income.

What Taxes Might I Pay when Buying Property in San Sebastián?

Buyers should budget for property transfer tax (6-10% of the purchase price), notary fees, and registry costs. Non-residents may also incur annual taxes on property ownership.

Can I Purchase an Apartment in San Sebastian Without Knowing Spanish?

While knowing Spanish is helpful, many estate agents and legal professionals in San Sebastian speak English and cater to international buyers. However, hiring a bilingual lawyer can ease communication and ensure you understand every detail of the transaction.